Skip to Content
author's profile photo Former Member
Former Member

Handling open POs after changing the tax %


Hello all,

Recently vat tax in client judistriction been increased from 5 to 8%. How it is going to impact on the open POs which are created before the tax % change and expected to recieve goods. Need your inputs over this.

Add a comment
10|10000 characters needed characters exceeded

Related questions

5 Answers

  • author's profile photo Former Member
    Former Member
    Posted on Jan 16, 2014 at 07:28 AM

    Generally it will not impact as your older PO'S have different value before this tax changes and it should not be as this changes are applicable on only those PO'S which are created after this new tax % changes.

    Due this generally procedure is to create new tax code which new percentages so if any changes in older PO'S the new tax % should not effect.

    So you need to create a new tax code through FTXP copying earlier tax code and change the new tax % and use in new PO'S.

    Hope it is clear to you.

    Rgds,

    Add a comment
    10|10000 characters needed characters exceeded

  • Posted on Jan 16, 2014 at 07:45 AM

    Hi,

    No need of any changes in your old PO. Create condition record in FV11 with validity start as the day new tax % becomes valid.

    Please make a note that for material received before new tax % and invoice received later, you may either change the posting date or manually enter tax amount in MIRO without checking 'calculate tax'.

    Regards,

    Sudeep.

    Add a comment
    10|10000 characters needed characters exceeded

  • Posted on Jan 16, 2014 at 07:30 AM

    Hi,

    The tax accounts will be posted according to the percentage applicable at the time of the postings. While doing GR or MIRO for the existing PO's with old % value, will b e posted to tax accounts with new % values applicable at the time of the GR / MIRO postings.

    You may maintain the tax % with correct validity date.

    Regards,

    AKPT

    Add a comment
    10|10000 characters needed characters exceeded

  • Posted on Jan 16, 2014 at 07:44 AM

    if the VAT % changes, then you actually do not change the % in an existing tax code, you have to create a new one, because you have open POs and invoices that need the old % rate while you have POs and invoices with the new percentage at the same time.

    I suggest to read this OSS note from the last VAT % change in Germany, as it gives a good overview what has to be done in each module when the VAT changes:

    984842 - Change to sales/purchases tax rates in Germany Jan 01, 2007

    Add a comment
    10|10000 characters needed characters exceeded

  • author's profile photo Former Member
    Former Member
    Posted on Jan 27, 2014 at 09:30 AM

    Thanx sudeep & Mallinath for prompt reply.

    Add a comment
    10|10000 characters needed characters exceeded

Before answering

You should only submit an answer when you are proposing a solution to the poster's problem. If you want the poster to clarify the question or provide more information, please leave a comment instead, requesting additional details. When answering, please include specifics, such as step-by-step instructions, context for the solution, and links to useful resources. Also, please make sure that you answer complies with our Rules of Engagement.
You must be Logged in to submit an answer.

Up to 10 attachments (including images) can be used with a maximum of 1.0 MB each and 10.5 MB total.